Synergy Health Share Discussion Threads

[cat] 18/12/2001 10:36

10 o' clock news on Friday night - hospitals are abandoning the disposable tonsillectomy kits because of the damage the gags are doing to patients pharynx per op. Lots of tearing incidents. There is a national recomendation to return to using the re-usable instruments which are of much higher quality.
This means loads more work for "in-house" on-site sterilisation units like Synergy which will have to sterilise them.

[matthewa] 18/12/2001 10:13

Up she goes.

[matthewa] 18/12/2001 10:12

Up she goes.

[reflectivetrevor] 17/12/2001 09:00

This was tipped in shares mag last thursday apparently, can anyone tell me what it said please?

TIA

RTV

[matthewa] 07/12/2001 00:30

2.05 -2.15 all buys today.

[dil] 06/12/2001 17:02

Sure will.

Will have a look at the figures over the weekend but if you've got nothing better to do tomorrow then give Brewin Dolphin a ring CAT.

Dil

[reflectivetrevor] 06/12/2001 15:18

LONDON (SHARECAST) - NHS outsourcing company Synergy Healthcare has reported maiden interim figures in line with expectations and now looks set to benefit from the increasing focus on sterilisation services in the NHS.

AIM-quoted Synergy originally supplied surgical procedure packs including instruments and gowns. In 1996 it started providing sterile instrument services and linen for hospitals. More recently it has moved into waste disposal. Contracts with NHS Trusts tend to be for five or more years.

Among Synergy's strengths is that its operating theatre management software reduces the risk of surgery cancellations for non-medical reasons - a major waste of NHS resources.

One of Synergy's customers is the Southern Derbyshire NHS Trust. It has one of the lowest surgery cancellation rates in the country. Similarly, the packs of surgical instruments Synergy supplies have a defect rate of between 0.2%-0.4% - well below the competition.

Recent publicity has highlighted problems that some hospitals have had with infections transmitted via surgical instruments. This has prompted the government to allocate £200m to hospitals to help alleviate the problem and the group said: "The development of the Department of Health's ('DOH') strategic plan for the regeneration of sterile services is a very exciting opportunity for the surgical division."

Synergy could pick up more outsourcing work from this area and it also has software called TrakStar which helps to run sterile services more efficiently. TrakStar costs £80,000 to install and provides real time information on trays of instruments.

TrakStar can link trays of instruments with the patients that they have been used on. If one patient is found to have an infection than the others at risk can be traced.

Shares in Synergy rose 8.5p to 210p on the results. In August it raised £8m net at 128p a share to finance extra facilities and tenders for more outsourcing contracts.

So far this year Synergy has won seven new contracts. That takes the total to 41. Five of the new contracts have already started to contribute. The other two require construction of new sterile facilities so they won't generate revenues until the beginning of the next financial year.

In the six months to September 2001 turnover rose 16% to £5.8m and profit increased from £317,000 to £477,000.

House broker Brewin Dolphin is sticking to its full year profit forecast of £1.5m compared with £1m last year. Next year it expects another 50% rise in profit.

Synergy's forward order book, which stretches many years into the future is £60m - £20m higher than at the time of the float.

The shares have performed strongly since the flotation and are currently trading on just under 22 times next years earnings.

[reflectivetrevor] 06/12/2001 15:11

bit quiet considering, but there should be quite a bit of press coverage about this one.

[cat] 06/12/2001 13:27

So this means that the second half will be better still...

[innovation99] 06/12/2001 11:15

I prefer this bit :)

It should be appreciated that Synergy has a highly seasonal year and traditionally the business trades in the second half at a substantially higher level than during the first six months

[reflectivetrevor] 06/12/2001 07:44

Personally I like this bit:

Contract wins in the first half were impressive and the business's momentum continues although contract wins are expected to predominately fall in the first half of each year.

Nice!

[dil] 06/12/2001 07:34

Excellent results and with a heavily weighted second half bias , good visibility of earnings due to foward order book , new contract wins and extra funding for health services then an exciting time ahead.

Dil

[matthewa] 06/12/2001 07:26

Excellent set of results - Expect a decent open. Highlights include profits up 50% and even a divi paid!.

[matthewa] 06/12/2001 07:25

Excellent set of results - Expect a decent open. Highlights include profits up 50% and even a divi paid!.

[dil] 05/12/2001 20:00

Stop ramping .... 3 quid by xmas :-)

Dil

[cat] 05/12/2001 17:35

[e-mail]

[gausie] 05/12/2001 11:14

Hywell - drop me a mail, may have something interesting.

[gausie] 05/12/2001 11:10

Got a mention in way back when.

[innovation99] 05/12/2001 11:06

Fair comment Gausie.

[cat] 05/12/2001 11:05

Luvly jubbly - you got inside then?

[gausie] 05/12/2001 10:58

Kaffee

It's not exclusive on the PBB - unless you cant afford £5 a month :-)

Now long SYR again

Gausie

[innovation99] 05/12/2001 10:49

Took a punt on this one with results out tommorrow. Have to admit I have done limited research on this - using my gut instinct. Unreal, but am impressed with what I have seen as having worked in the NHS supply chain can see that this company have done their homework on how to win business. That said it all boils down to how they impress with their figures, and that is the unknown - for me anyway - unless anyone else has an insight. But as CAT states NHS outsourcing is big business and growing - so here's hoping.

PS I should use more gut instinct as my research never seems to pay off. The last month my gut instinct has led me to buy Potential Finance - Interior Services and Regus - guess its about getting in before the herd arrives nonetheless am I a happy little bunny.